IIJI: Rising until June 14 th

Internet Iniative Japan (IIJI). The Group's principal activity is to provide internet access services such as dedicated access and dial-up access. The Group is also engaged in systems integration services and internet data centre services.

The long term chart:



The short term chart:



One big white candle with explosive volume. As a speculator I wouldn't need more to buy some stocks, because the chart shows demand is a lot stronger than supply.

But this stock has a story, and one of those I like most: a buy the rumor story !

«TOKYO--(BUSINESS WIRE)--May 27, 2005--Internet Initiative Japan Inc. (IIJ, NASDAQ:IIJI), one of Japan's leading Internet access and comprehensive network solutions providers, today announced that it received notification that the Tokyo Stock Exchange has approved the listing of its shares of common stock on the Mothers market of the Tokyo Stock Exchange. IIJ believes that listing on the Mothers market will further expand its business by strengthening its presence in Japan and by providing additional financing options. The expected listing date is June 23, 2005.»

«The offer price for the public offering in Japan will be based on the closing price of IIJ's American Depositary Receipts on the NASDAQ National market on the date prior to the pricing date subject to a discount determined in accordance with market demand. Pricing is expected to occur on a date between June 14 and June 16.»

IIJI is rising today primarily because of this IPO. The fact will only be true by the 23th of June, and pricing will be established taking into account the price on the Nasdaq by the 14th of June. Japanese investors are getting ahead and buying right now in the Nasdaq, because demand for the IPO is staggering. I believe we have a setup for price appreciation here.

Also, the earnings release from the company was encouraging:

«Japan provided the day's biggest percentage gainer. Internet Initiative Japan Inc. (IIJI: news, chart, profile) soared $1.27, or 28.2%, to $5.77, and was the second-biggest traded ADR of the session. The company posted a profit of 2.9 billion yen for fiscal 2005 vs. a loss of 2.3 billion yen a year ago. For fiscal 2006, the company said it's targeting a profit of 3.7 billion yen on revenue of 46.33 billion yen.»

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